Logistics Under Pressure from Still-Expensive Oil Products

Slovenia’s fuel supply begins with a tanker at the Port of Koper and ends with road tankers serving 317 petrol stations. Petrol says that chain must continue operating for a long time, even as electrification targets advance.

About 88% of the country’s fuel arrives by sea. Some of it, including the 82% that is diesel, is pumped into the Sermin storage facility, while some is loaded onto trains. Rail deliveries also supply storage facilities in Zalog and Rače. From those locations, tanker trucks distribute fuel to service stations across Slovenia.

Petrol receives eight tankers a month, seven of them at Koper. Each shipment must be announced 21 days in advance, and the fuel is tested before it is pumped out. Tomaž Slavec, Petrol’s executive director for fuel procurement and trading, said the company had already rejected one tanker. Biodiesel, which regulations require to be blended with diesel, arrives overland from nearby refineries.

The company says planning and forecasting helped Slovenia avoid shortages during the COVID-19 epidemic, the war in Ukraine and conflicts in the Middle East. Petrol selects verified suppliers through an international tender at the end of each year and says it needs several suppliers rather than relying on one.

The tankers carry between 30,000 and 40,000 tonnes of petroleum products, can measure up to 200 metres, and must have a draft of no more than 13 metres. A three-kilometre pipeline connects Koper with Sermin, where workers can transfer up to 30,000 tonnes a day. Slavec said prices can reach $200 or even $300 per barrel in certain months, while approved gross margins cannot compensate for buying larger volumes at higher prices. The system has already faced two tests this year, with Petrol citing infrastructure limits and a finite number of loading arms.

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In certain months, prices jump to 200 or even 300 dollars per barrel. If we buy more fuel at a higher price, we cannot make up for that with the approved gross margins.